EUR/CAD pares its recent gains from the previous day, trading around 1.6000 during the European hours on Tuesday.
The currency cross depreciates as the commodity-linked Canadian Dollar (CAD) holds ground against the Euro (EUR) due to higher oil prices
It is worth noting that Canada is the largest crude exporter to the United States (US). West Texas Intermediate (WTI) oil price extends its gains for the fourth consecutive day, trading around $102.20 per barrel at the time of writing. However, Crude oil prices may decline amid easing Middle East concerns after reports that United States President Donald Trump said on Monday that he has ordered a pause on a planned US military attack on Iran scheduled for Tuesday.
This decision reportedly followed appeals from the leaders of Qatar, Saudi Arabia, and the United Arab Emirates. However, Trump also warned that the US remains prepared to go forward with a full, large-scale assault on Iran if a deal is not reached. Canada’s March inflation data had already highlighted the impact of elevated energy prices on domestic consumer prices, keeping markets alert to renewed upside inflation risks.